Topshop's parent company has been placed in receivership in New Zealand

The company behind global fashion brand Topshop and Topman in New Zealand has been put into receivership.

But the brand’s two stores in Auckland and Wellington will remain open until a decision was made about their future ownership, the company’s directors said.

Top Retail, which holds the licence for the Topshop brand in New Zealand, is owned by companies connected to fashion designer Karen Walker, Barkers menswear and Christchurch developer Phillip Carter.

In a short statement, Top Retail’s directors said they were “committed to working closely with all local staff through this transition stage”.

“We have put our hearts and souls into this business, we have the best staff, great store locations, and the directors have left no stone unturned in trying to find a solution.

“We will work closely with the receivers to ensure the best possible outcome for the business and employees.”

Control of the business now rests with McGrathNicol receivers Conor McElhinney and Kare Johnstone, who said it had become “apparent that the company was unable to continue to trade due to the losses being incurred”.

The receivership was voluntary and the directors had indicated the main cause of the business’ problems was increasing competition. Similar issues had dogged Topshop’s Australian operator, they said.

Topshop and Topman’s arrival in New Zealand was much heralded when it opened its doors in Queen St in early 2015.

Another store was opened in Wellington last November and two more, in Christchurch and a second Auckland store, were planned.

When Topshop’s Australian operators went into voluntary administration in May, the New Zealand directors took pains to say the two businesses were unconnected and that the New Zealand rollout had been taken place more slowly.

The Australian stores have been since bought out by Topshop’s global owner, Sir Phillip Green.

McGrathNicol urged any parties interested in the New Zealand business or assets such as the leases or fit-out, to contact it urgently.

This article was originally published on Stuff.co.nz. Read the original here.